Second mortgage advice anyone?

jazzkitten

Hi
I'm new to this forum - hi everyone!

I would like some advice - the situation I have may be complicated, but I'll explain.

My Gran died a year and a half ago, leaving my Dad, her only child, her estate. He had verbal instructions from her to split the proceeds of the sale of her house 5 ways, between him, my Mum, me and my two sisters.
Then he asked me and my hubby if we would like to buy her house. It was better than the one we lived in, having more room, although it needed a full renovation. We accepted, and renovated the house.
So now we have our old house on a base rate mortgage bought for £120k in 2008 and current mortgage is £91k.

I've been trying to find out whether we can borrow more money so we can keep our old house (was rented but now empty) and purchase the house off my Dad. So far no go, BTL is so expensive and on interest only goes against the grain. I'd like to try holding on to the house though, as i became self employed in 2000 and I'd only paid into my pension until 1996. So I'd like to hold onto the house as a pension for me and hubby if poss.

So...we consulted a local Financial Adviser who said this:
"I can introduce you to a third party that has access to a specialist strategy that uses a little known exemption in pension law to allow you access the funds at any time and without tax charges."

Does this sound legal? Does it sound viable to those experts amongst you out there?

I have a pension which current transfer value is £49k. I am 44 years old. I earn 30k pa gross as self-employed. Net profits around £20k pa.
Husband earns £8k before tax.

Any help appreciated.

Thanks

Conrad

You need a simple residential mortgage on the new place. The deposit could be any equity your Dad decides to gift you.

Don't entertain the pension thing, even if it is true, it will cost you a lot in the long run.